Abstract

The recent COVID-19 pandemic raises questions about consumer willingness to give tips during such times of hardship. Analyses of a Texas pizza delivery driver’s tip records and of nationwide Square payment data for quick- and full-service restaurants explored this issue by comparing tips during the pandemic with those before it. These data suggest that the pandemic increased the average tip-per-order given to a pizza delivery driver as well as the average tip percentage given for many transactions at quick- and full-service restaurants. They also suggest that the pandemic decreased the average tip percentage for face-to-face transactions at full-service restaurants but only by a modest 1 to 2 percentage points. The findings suggest that the tipping model remains a viable means of employee compensation even during periods of public health and economic crises if the nature of the services provided does not change substantially.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.